US President Donald Trump is preparing to announce a new, $12 billion farm aid package. This effort is meant to assist farmers who are suffering from decreased crop prices as a result of persistent trade fights. The announcement, scheduled for 14:00 EST on the White House lawn, comes amid growing public concern regarding rising costs, as reflected in recent polling data.
The support package delivers a double-whammy to immediate plight of American farmers. That effort is targeted specifically to anyone who grows sorghum or soybeans. Picture this… These on-the-ground farmers have suffered most by these ongoing and unresolved trade spats with China. In the past, China has been their biggest crop importer. According to sources, most of the package—$11 billion—will be allocated for one-time payments to farmers for row crops through the Agriculture Department’s Farmer Bridge Assistance program. An extra $1 billion goes towards specialty crops, which aren’t covered by this program.
During his first term, Trump provided significant financial relief to farmers, including $22 billion in 2019 and another $46 billion in 2020, which addressed impacts from the Covid-19 pandemic. This package of assistance provides immediate relief for farmers dealing with an unforgiving market. It’s enabling them to deal with today’s challenges with an eye on tomorrow’s crops.
The timing of this announcement coincides with Trump’s October meeting with Chinese leader Xi Jinping in South Korea, where the two leaders discussed trade commitments. Immediately following the meeting, the White House announced that China will buy no less than 12 tonnes of US soybeans by the end of 2025. Plus, China has committed to purchasing 25 metric tonnes per year for three years. So far, China has taken possession of just a quarter of that promised total.
As all these changes came into the spotlight, Trump has dismissed increased costs as a Democrat “hoax,” and a “con job.” This rhetoric contrasts sharply with the reality facing many Americans today, who are increasingly worried about inflation and its impact on their daily lives.
On Saturday, President Trump signed an executive order to increase food supply chain security. The order addresses anti-competitive behavior in agriculture. These moves show, without a doubt, that this administration is committed to doing right by all of our farmers during this complex time.
Mark Legan, a livestock, corn and soybean farmer from Putnam County, Indiana, was hopeful about the new aid package. He said they are looking for government support to be made whole financially.
“The Chinese actually used our soybean farmers as pawns in the trade negotiations.” – Scott Bessent
For farmers who are depressed after losing the ability to market this year’s harvest, the new aid package is a lifeline. It will enable them to take stock before making promises to next year’s seedlings. As a White House official explained, these payments “will provide a bridge in the meantime.” Their professed goal is to help the nation’s farmers survive and thrive until the administration’s trade policies lead to a healthier market climate.